WASHINGTON (Reuters) - The U.S. economy needs to create many more jobs before it can fully heal from the deep cuts incurred during the worst recession in generations, a top Federal Reserve official said on Tuesday.
Sarah Bloom Raskin, a governor of the U.S. central bank’s influential board, told a conference on employment that she was also worried about the low quality of new jobs being created.
The U.S. jobless rate currently stands at 7.5 percent, down from a crisis peak of 10 percent but well above the country’s historical norm.
“The unemployment rate still remains high,” said Raskin at the Roosevelt Institute event. The official unemployment figures “underestimate the scope of the problem,” she added.
The Fed continues to support economic growth through a stimulus that entails $85 billion in monthly mortgage and Treasury purchases. After taking interest rates to zero at the end of 2008, the central bank is on track to buy more than $3 trillion in securities, more than quadrupling its balance sheet from pre-financial crisis levels.
Raskin, who was part of a panel, did not discuss the outlook for monetary policy.
Reporting by Pedro Nicolaci da Costa; Editing by Andrea Ricci